Terry is correct, those assignments are typically ordered as part of the the pre-foreclosure process associated with the "HUD Claims Without Conveyance of Title" program.
The below was excerpted certain from page 915 of the latest 4000.1…
(H) Claims Without Conveyance of Title Properties
(1) Assignment Type Under “Assignment Type” in the “Subject” section of the appraisal reporting form, the Appraiser must mark the box labeled “other” and indicate that the Property is a HUD Claims Without Conveyance of Title (CWCOT) Property.
(2) Intended Use of Appraisal The intended use of the appraisal is to develop the as-is Market Value, which is a Mortgagee’s tool for calculating the Commissioner’s Adjusted Fair Market Value (CAFMV) (24 CFR § 203.368). (3) Intended User FHA is the intended user of a CWCOT appraisal.
II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages 12. Programs and Products (4) Appraiser’s Inspection The Appraiser must inspect the interior and exterior of the Property. If the Appraiser cannot enter the Property, the Appraiser may perform the valuation based on an exterior-only inspection on the Fannie Mae Form 2055/Freddie Mac Form 2055, Exterior-Only Inspection Residential Appraisal Report, dated March 2005, or the Fannie Mae Form 1075/Freddie Mac Form 466, Exterior-Only Inspection Individual Condominium Unit Appraisal Report, for a condominium Property. The Appraiser must indicate that the Property could not be entered and identify the sources of the factual property data employed by the Appraiser in determining the value. (5) Appraisal Conditions CWCOT Properties are to be appraised “as is,” in the condition as it exists on the effective date of the appraisal. The value to be determined is Market Value. The Appraiser must provide an analysis and report of the value of the subject Property “as is.” Under “Reconciliation” in the “This appraisal is made” segment, the Appraiser must mark the box labeled “as is.”
Handbook 4000.1 883 Last Revised: 05/20/2024
Here is some of the specific verbiage I use when submitting those.
The purpose of this appraisal is to develop the as-is Market Value, which is a Mortgagees tool for calculating the Commissioners Adjusted Fair Market Value, estimating the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership.
The INTENDED USE of this appraisal is to develop the as-is Market Value, which is a Mortgagees tool for calculating the Commissioners Adjusted Fair Market Value only, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value.
